UNEMPLOYME

NT AND ITS
NATURAL
RATE
What does being unemployed mean?
Those who are on temporary layoff, are willing to
work and looking for a job, or are waiting for the
start date of a new job

Employed

Labor force

Working-‐age
­
(> 15 y.o) Unemployed
Not in labor
Population force (full-­‐
Not in the time student,
working-‐age
­ homemaker,
retiree)
 What is it a problem?

• Lost productivity and income

Not having a job makes an individual unable to do a production
activity and hence not earning any income  becomes a burden
(for example: parents)

• Lost human capital

Lost job means an individual is currently in a vacuum period of
his/her career. (for example: a manager is fired and becomes a
taxi driver; when he gets a new job later it will be difficult for him
to compete with the new ‘generation’)
 Three Labor Market Indicators
Unemployment Rate
An indicator of the extent to which people who want jobs can’t find them
Unemployment rate = Number of unemployed
Labor force X 100

Labor Force Participation Rate

An indicator of the willingness of people of working age to take jobs
Labor force
participation rate = Labor force
Working-‐age
­ population X 100

Employment-to-
populaTofthpeople
The percentage ieopnofrocworking
reasstiageboywhich
who havethe jobs

Employment to Number of employed

Working age population X 100
Population ratio =
 Why Do We Calculate Unemployment?

“In order to know the labor resources that are not utilized in
the economy”
However, this measurement still has weaknesses, because it doesn’t
include:
• Marginally attached worker
A person who currently is neither working nor looking for work but has indicated
that he or she wants or is available for a job and has looked for work sometime in
the recent past, which in a long time will become:

•
Discouraged worker The process
A person who has stopped looking for a jobbybecause
which the
of repeated failure to find
 The Anatomy of Unemployment

People become unemployed of they

• Lose their jobs & search for another job
• Leave their jobs & search another job
• Enter or reenter the labor force to search for job

People end a spell of unemployment if

they
• Are hired or recalled
• Withdraw from the labor force
The Anatomy of Unemployment

Job losers, job leavers, & retirees

Job losers, job leavers Withdrawals

Not in Labor
Employed Unemployed
Force

Hires, recalls Entrants, reentrants

Entrants, reentrants
 Types of Unemployment

Frictional Unemployment
Unemployment that results from the time that it takes to match
workers with jobs—it takes time for workers to search for the jobs
that are best suit their tastes and skills.
Structural Unemployment
Unemployment that results because the number of jobs available in some
labor markets is insufficient to provide a job for everyone who wants one

Cyclical Unemployment
Fluctuating unemployment over the business cycle
Types of Unemployment

Frictional
Unemploymen
t Natural Rate
Full-
of
employment
Structural Unemploymen
Unemploymen t
t

Cyclical
Unemploymen
t
 Public Policies and Job Search
Gov’t programs affecting the time it takes unemployed workers to
find new jobs:
• Government-­‐run employment agencies
• Public training
• Unemployment insurance
Why is there structural unemployment?
• Minimum-­‐wage laws
• Unions
• Efficiency wages
Above the Equilibrium Level

Wa
ge
Labor
Surplus of labor = supply
Unemployment
Minimum
wage

WE

Labor
demand

0 L L L Quantity
D E S of
Labor

Copyright©2003 Southwestern/Thomson Learning

Dewa adalah pemilik perusahaan yang memproduksi air minum dalam
kemasan di Bali. Ada banyak perusahaan serupa lainnya di daerah tersebut.
Dewa memutuskan bahwa jika dia membayar para pekerjanya dengan upah
yang lebih tinggi di atas upah yang berlaku, maka labanya akan meningkat.
Manakah dari berikut ini yang kemungkinan merupakan penjelasan untuk
keputusannya?

a. Semakin tinggi upah, semakin jarang pekerjanya yang memilih untuk

meninggalkan perusahaan.
b. Semakin tinggi upah, semakin rendah biaya untuk mendapatkan
persediaan yang dibutuhkan.
c. Semakin tinggi upah, semakin tinggi harga jual air kemasannya.
d. Upah yang lebih tinggi akan membuat para pekerjanya mangkir.
Diketahui bahwa kantor statistik lokal Kota “Banana Boat” mencatat jumlah
orang bekerja pada Januari 2022 adalah 11 juta orang, sementara jumlah
populasi kota tersebut adalah 15 juta orang. Kantor statistik tersebut juga
mencatat adanya 10 persen dari total populasi penduduk adalah mereka
yang belum memasuki usia kerja, sementara 5 persen lainnya adalah
mereka yang telah melewati usia kerja. Kantor statistik juga mencatat
bahwa 450.000 penduduk usia kerja sedang menempuh pendidikan penuh
waktu (full time), sementara 300.000 penduduk lainnya ternyata telah
mengajukan pensiun dini atas berbagai alasan.
Dengan mempergunakan data dan informasi di atas, hitunglah:

a. jumlah penduduk usia produktif pada Januari 2022. (2 poin)

b. jumlah angkatan kerja pada bulan Januari 2022. (2 poin)
c. tingkat partisipasi angkatan kerja pada bulan Januari 2022. (2 poin)
d. jumlah pengangguran pada bulan Januari 2022. (2 poin)
e. tingkat pengangguran pada bulan Januari 2022. (2 poin)
THANK YOU